Twice this month, this column has addressed the current administration’s use of selective, competitive procurement processes to select contractors for major housing projects in Trinidad. The issue was highlighted on June 4 under the headline Who will benefit from the Revitalisation projects? and on June 11, with the headline, Will the OPR do the right thing? Both of those commentaries looked at the procurement decisions made by State entities, the Housing Development Corporation (HDC) and LandmarkTT Properties Ltd.
It is a fact that the company Mootilal Ramhit & Sons Contracting was selected by LandmarkTT Properties to receive a $129.83 million contract to construct 100 houses using the design, build finance model at the Allamby residential development in Corinth, San Fernando, in April 2026. The same company was selected by the HDC to receive a $1 billion contract in April 2026. That contract was part of the $3.4 billion in contracts the HDC proposed to award to 11 local firms, also using the design-build-finance model.
Other intended awardees included Hakim Hosein Construction Company, California Stucco Company, CE Management and Services, Keith’s Transport and General Contracting Service, Trinidad Pro Construction, Oilfield and Industrial Hardware and Bristol Construction Company.
On April 17, the Office of Procurement Regulation (OPR) intervened in the HDC’s procurement process and directed the corporation to suspend it pending a review. The regulator’s intervention came after stakeholders raised concerns regarding the HDC’s compliance with the procurement legislation and the manner in which the exercise was conducted.
It is noteworthy that last week Wednesday, the HDC issued a notice cancelling the $3.4 billion in contracts, but there has been no word about whether LandmarkTT Properties would do the same.
In the notice issued by the HDC, it outlined the following:
“The Trinidad and Tobago Housing Development Corporation hereby notifies all participating proponents that the procurement proceedings for the above-referenced project RFP No. 050126 – DBF – Portfolio 1) have been cancelled pursuant to Section 33 of the Public Procurement and Disposal of Public Property Act, 2015 (as amended), with immediate effect.
“Following completion of the evaluation process and the expiration of the standstill period established pursuant to section 35 of the Public Procurement and Disposal of Public Property Act, 2015, as amended, the HDC has determined that it is in the public interest and in accordance with the Act to discontinue the procurement proceedings for this project.
“The standstill period prescribed under section 35 has elapsed, and no contract has been entered into with any supplier or contractor. Consequently, no Notice of Acceptance shall be issued under section 35(6), and no procurement contract shall arise from these proceedings.
“The reasons for this cancellation have been recorded in the procurement proceedings record in accordance with Section 33 of the Act.
“The HDC thanks all proponents for their participation in this procurement process.”
Section 33 of the Public Procurement and Disposal of Public Property Act, 2015 (as amended), does allow a procuring entity to cancel a procurement process, “at any time prior to the acceptance of the successful submission; or after the successful submission is accepted under the circumstances referred to in section 35(6).
But section 33 (3) of the procurement legislation states, “The decision of a procuring entity to cancel a procurement and the reasons for its decision shall be included in the record of the procurement proceedings and promptly communicated to any supplier or contractor who presented a submission.”
So T&T’s procurement law obliged the HDC to provide the reasons for its decision to cancel the $3.4 billion in HDC contracts. The HDC said its decision to discontinue the contracts was based on its determination that “it is in the public interest” to do so.
Questions:
* Does the OPR accept that section 33 (3) of T&T’s procurement law is properly satisfied simply by the HDC determining that it was “in the public interest” to cancel the $3.4 billion contracts?
* Shouldn’t the HDC, as the procuring entity, explain how the cancellation of these contracts is in the public interest?
It is interesting that it was Minister in the Ministry of Housing Phillip Alexander who provided an explanation for the HDC’s decision to cancel the $3.4 billion in contracts, and not the actual Minister of Housing, David Lee.
According to a story by Guardian Media’s lead editor, politics, Akash Samaroo, published last Friday, Mr Alexander said the Government took the decision to cancel the $3.4 billion in HDC contracts “before it became something that was just going to drag on.”
He said, “It was going to be a back and forth, and before it became something that was just going to drag on, we’re not leaving it in limbo,” Alexander told Guardian Media.
He is quoted as saying, “We took the decision to say, look, you’re not happy with this process, we’re going to pull it. We’re going to come back at it, where any of the issues that you had a concern with before will not exist...
“We really don’t appreciate wasting this time here, because we really want to deliver the houses. So that’s why we’re adding more projects to the rollout. So instead of 11, it might be 21.
“These same projects that have been pulled here will be reissued together with more, and every single developer, because that was the number one complaint that we got, that some people felt like they didn’t get time to tender, so now everybody has a chance.”
This seems like an acknowledgement that the initial $3.4 billion in contracts for the construction of thousands of houses was doomed to get bogged down by hearings held by the OPR and potential legal challenges of the outcomes of the regulatory process.
The Government must have envisaged that continuing to support what was clearly a flawed process used by the HDC had the potential to mean that no houses would get built in the four years remaining of the current administration’s term of office.
Despite Mr Alexander’s pledge that everyone will have a chance to bid when the expanded portfolio of houses is put back out to tender by the HDC, does that mean that the outcome of the second procurement process will be different from the first process?
I have my doubts:
* It is clear, in my view, that the selective, competitive tendering process—which was used by both HDC and LandmarkTT Properties—is liable to be challenged in the future because it excludes certain contractors, and is therefore intrinsically unfair.
If the current administration is interested in fairness, it would ensure that all qualified home builders who meet reasonable financial, track record, quality, and other benchmarks should be allowed to bid;
* Even an open, competitive bidding process may not be enough, as the HDC employees are capable of recommending the award of contracts to companies, that should be ineligible. The proof of this statement comes from the July 2024 announcement that HDC issued a notice of an intention to award a contract to design and build houses in Santa Rosa, Arima, to China Harbour Engineering Company Ltd. Contemporaneous reporting by Guardian Media indicates that the Chinese firm bid $475.83 million, but was not the lowest bidder for the contract.
According to a notice attached to the announcement, several local contracting firms submitted bids for the project, but were not successful. Junior Sammy Construction submitted a bid for $419.22 million, Mootilal Ramhit & Sons Contracting submitted a bid for $344.15 million, and NH International (Caribbean) put in a bid of $259.61 million. That contract was also cancelled.
* If most of the 11 proposed bidders for the $3.4 billion HDC contracts were financiers of the United National Congress’ 2025 general election campaign, how is the current administration going to explain to those financiers that a housing procurement process results in them not being selected, while contractors who they assume to have financed the now Opposition People’s National Movement get the nod?
